An increase in the discount rate by the Federal Reserve causes the money stock to expand

Which of the following is most likely a constant cost industry?

a. coal b. ice cream c. lumber d. oil

Which of the following statements best describes the U.S. budget scenario from World War II until about 1980?

a. During this period, the United States ran budget deficits almost every year, but the percentage increases in debt were smaller than the percentage growth of GDP, so the debt/GDP ratio declined. b. During this period, the United States ran budget deficits almost every year, but the percentage increases in debt were larger than the percentage growth of GDP, so the debt/GDP ratio increased. c. During this period, the United States ran budget deficits almost every year, the percentage increases in debt were larger than the percentage growth of GDP, yet the debt/GDP ratio declined. d. During this period, the United States ran budget deficits almost every year, the percentage increases in debt were smaller than the percentage growth of GDP, yet the debt/GDP ratio increased.